Tips to Reduce Holiday Spending without Cutting Back on Cheer

Dec 11, 2017 10:56PM
● Published by Melanie Heisinger

Seasonal
Spending

Amid the
merriment of the holiday season is a hard reality - nearly six in 10 Americans
don’t have enough savings to afford an unexpected expense like a $500 car
repair or $1,000 emergency room bill, according to a bank survey conducted by
Princeton Survey Research Associations International.

While 83 percent
of U.S. consumers are expected to spend $1,189 this holiday season, an amount
equal to or more than they spent last year, there is no reason to enter the new
year in bad financial standing if you do some smart planning and spend wisely.
Here are some great ways to reduce your seasonal spending, without cutting back
on the cheer.

Know your limit. Figure out
how much you can spend on gifts, decorations, etc. Divide the total amount into
a per-gift limit. If it doesn’t add up, cut back the gift list or consider
making a baked item or other homemade gift, or giving a gift certificate for a
service you might provide, such as babysitting, car washing or house cleaning.

Shop wisely. Watch for
special sale days and coupons. Many online retail sites offer free shipping,
discounts and other promotions during the holiday season. After the holidays,
look for deep sales on wrapping paper and greeting cards to save for next
year’s celebrations.

Spend differently. New ways
to pay for items can make the task of budgeting organized and straightforward.
Check out specialty e-retailers like Purchasing Power, which is offered by many
employers as a voluntary benefit, and gives workers an opportunity to shop for
thousands of brand name products they need now, for which they can make
manageable payments over time through payroll deduction. With no credit checks,
hidden fees or interest, it’s a service you may find gives you more flexibility
over a traditionally expensive season.

“It’s not always
possible to pay for big ticket items in full when you need them, whether you’re
buying a tablet for your teenager for the holidays or a family vacation package
next summer,” says Elizabeth Halkos, chief operating officer for Purchasing
Power, LLC. “We created this solution to empower people to budget more wisely,
and buy the things they need, while avoiding penalty fees and ballooning
interest associated with other payment options.”

Ask your
employer if an employee purchase program and financial wellness benefit like
PurchasingPower.com is available to your workforce.

Some additional
cost-friendly options for the holidays:

Suggest a family gift exchange. Spare
the expense and frustration of trying to find gifts for each member of your
extended family. Instead, pull names from a hat and find something special for
just one person. For extra fun, play “Secret Santa,” keeping gift-giver
identities concealed until the gift exchange.

Spend time together. In lieu
of gifts, bring everyone together over the holidays. Have a board game night or
a day of service, such as serving meals at a shelter.

Enjoy the season. There are
many ways to celebrate spending little to no money. Curl up for a holiday movie
marathon, bake cookies or look for free holiday concerts in your local area.
Shopping malls and community centers typically offer a schedule of no-cost
holiday entertainment.

For a better
financial start in the new year, spend wisely this holiday season. Smart
budgeting and new payment options can make it easy.

Courtesy of Statepoint Media.

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